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Today, we’re opening a new bullish trade on Facebook (NASDAQ:FB). The stock recently hit resistance just above $182.50 and pulled back as Wall Street started taking profits on tech stocks, sending them down through their previous support levels.

FB’s previous support sat at $176.50, but, during intraday trading on Monday, the stock dropped to and bounced up from what we believe is FB’s new support level just below $171 — the same level that served as support in late October before the stock started climbing in the run up to the company’s latest earnings announcement.

The reason this intraday drop to support is important is that we believe FB is oversold at this point due to an over-reaction on Wall Street to sell tech stocks.

A little profit-taking is part of the healthy functioning of the market, but, for a perennial winner like FB that continues to see strong earnings growth, it doesn’t take much of a decline in share value to attract new investors. We expect to see FB climbing back up to its recent highs of $182.50 during December.

‘Buy to open’ the FB January (2018) 180 Call (FB180119C00180000) for a maximum price of $3.60.

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InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.